Sorghum Crop Insurance Price Election Boosted to Reflect Current Pricing
LUBBOCK, Texas (Jan. 7, 2022)—The U.S. Department of Agriculture Risk Management Agency (RMA) has set the sorghum crop insurance price election for reinsurance year 2022 at 99.6 percent of the price of corn, compared to 96 percent for 2021. This price election means farmers will have the opportunity to insure grain sorghum at a price almost identical to that of corn.
“This price election gives sorghum producers their largest amount of price protection relative to corn in history under the federal crop insurance program,” National Sorghum Producers CEO Tim Lust said. “We are pleased that farmers will have the protection they need to meet the demand currently driving historically strong prices in the marketplace.”
The sorghum crop insurance price election formula is based on a 10-year rolling average of actual sorghum bids at elevators across the U.S. NSP worked closely with RMA after a 2008 Farm Bill directive to change this formula to be more reflective of sorghum pricing, and since implementation, the change has added $89 million in value to sorghum farmers through increased crop insurance coverage.
To access additional information about price elections for the upcoming insurance year, producers can use the USDA RMA price election tool.
National Sorghum Producers represents U.S. sorghum producers and serves as the voice of the sorghum industry coast to coast through legislative and regulatory representation and education. To learn more about NSP, visit www.sorghumgrowers.com.